Cannabis Stocks Now Appeal To Value Investors
2019 has been an extremely disappointing year for investors in cannabis stocks, with the overall market, as measured by the New Cannabis Ventures Global Cannabis Stock Index down 20% after a 55% decline in 2018. The market, which has declined over 71% since early 2018, has moved to three-year lows:
The current environment is challenging, as funding has dried up, a situation I discussed a month ago. Many companies won’t make it or will have to raise capital on extremely unfavorable terms that will substantially dilute shareholders, as they aren’t adequately capitalized. Investors are quickly figuring this out, and the broad selling has certainly hurt the companies with high cash-burns and weak balance sheets the most.
– Read the entire article at Forbes.